Taiwanese semiconductor giant TSMC has opened a new computer chip plant in Dresden, Germany. The €10 billion facility is expected to be a key supplier for European industries, particularly carmakers, after receiving €5 billion in state aid from the EU.
This marks the largest aid package approved under the EU Chips Act, which aims to boost semiconductor manufacturing in Europe. The plant is the first project in Germany under TSMC and is intended to improve Europe’s resilience to future chip shortages like those experienced during the COVID-19 pandemic.
EU Commission President Ursula von der Leyen hailed the project as a “win-win situation” during a ceremony in Dresden. German Chancellor Olaf Scholz emphasized the importance of securing access to semiconductors, while Economy Minister Robert Habeck promised support to ensure the plant’s production by 2027.
TSMC formed a joint venture called the European Semiconductor Manufacturing Company (ESMC) with European firms Robert Bosch, Infineon, and NXP, each holding a 10% stake. The plant will operate as an open foundry, allowing various companies, including smaller ones and universities, to access its services.
Although the plant won’t produce the most advanced chips used in AI and smartphones, it will focus on chips essential for the automotive and industrial sectors. TSMC also plans to use the plant to manufacture microcontroller units (MCUs), vital components in car systems like brakes, windows, and sensors.
The project highlights Europe’s push to secure its chip supply after the pandemic shortages, with similar efforts underway in the U.S. and Japan.
